Key facts
- Morgan Stanley reiterates Overweight rating on Eli Lilly stock.
- The firm anticipates potential upside for Eli Lilly's stock.
Morgan Stanley has reaffirmed its Overweight rating on Eli Lilly stock, indicating a positive outlook and anticipating potential upside for the company's shares. This analyst action comes in the context of recent positive developments for Eli Lilly, including CVS Caremark's decision to reverse its previous exclusion of Zepbound from coverage, effective October 1. This coverage reversal means all three major U.S. pharmacy benefit managers (PBMs) now cover Eli Lilly's obesity drug portfolio, a significant development that had previously caused a notable drop in the company's stock price. Eli Lilly recently reported strong Q1 2026 earnings, with substantial year-over-year increases in both revenue and adjusted earnings per share.